a. Calculate Quick Burgers free cash flow in 2016. (Enter your answer in millions.)

b. If Quick Burger was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 35%.) (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

c. What would the companys free cash flow have been if it was all-equity financed?

INCOME STATEMENT OF QUICK BURGER CORP., 2016 (Figures in $ millions) Net sales $ 27,578 Costs 17,580 Depreciation 1,413 Earnings before interest and taxes (EBIT) $ 8,585 Interest expense 528 Pretax income 8,057 Taxes 2,820 Net income $ 5,237 2016 2015 3,414 3,414 400 3,154 3,554 Assets Current assets Cash and marketable securities Receivables Inventories Other current assets Total current assets Fixed assets Property, plant, and equipment Intangib assets (goodwill) Other long-term assets Total assets BALANCE SHEET OF QUICK BURGER CORP., 2016 (Figures in $ millions) 2016 2015 Liabilities and Shareholders' Equity Current liabilities 2,347 2,347 Debt due for repayment 1,386 1,346 Accounts payable 133 128 Total current liabilities 1,100 627 4,966 4,448 Long-term debt 24,688 22,846 Other long-term liabilities 2,815 2,664 Total liabilities 2,994 3,110 Total shareholders' equity 35,463 33,068 Total liabilities and shareholders' equity 13,644 3,068 20,126 15,337 35,463 12,145 2,968 18,667 14,401 33,068 In 2016 Quick Burger had capital expenditures of $3,060